Investing in aviation sector will pay off

While the number of big-ticket orders was down compared with other years, many of the deals signed at the Dubai Air Show have put in place the infrastructure necessary for the building of a viable aviation industry in the UAE.

This is important as the outlook for the aviation industry in the UAE, and the Middle East in general, is strong, with manufacturer Boeing predicting that by 2028 regional airlines will require 1,710 new planes worth $300 billion (Dh1.1 trillion). Globally, it predicts that airlines will need 29,000 planes valued at $3.2 trillion.

By securing a stake in the global aviation industry, the UAE is investing in a business that will help develop its industrial base, diversify its economy and provide it access to the latest technology. This will also ensure that some of the money the country is spending on aircraft is indirectly retained in the UAE and will provide an ongoing return for the economy.

At the Dubai Air Show, the Mubadala Development Company of the Abu Dhabi government signed a Strategic Framework Agreement with Boeing to develop manufacturing, engineering, research and development, commercial and military maintenance and repair capacity, and pilot training capabilities. Mubadala also has agreements to produce aircraft components with manufacturers Airbus and Finmeccanica. The company aims to be building business jets by 2018.

Dubai has already launched Dubai World Centre (DWC), the world's biggest purpose-built aviation city, among other initiatives. It will host the world's biggest airport — DWC Al Maktoum International Airport — and be a global aviation manufacturing and services centre. The Sharjah Government is also investing in its aerospace services capacity.

This year, the success of the Dubai Air Show will not only be measured in the value of purchase and service agreements, but also in the great progress the UAE has made in building its aviation industry.